Correlation Between Kakel Max and FM Mattsson
Can any of the company-specific risk be diversified away by investing in both Kakel Max and FM Mattsson at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kakel Max and FM Mattsson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kakel Max AB and FM Mattsson Mora, you can compare the effects of market volatilities on Kakel Max and FM Mattsson and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kakel Max with a short position of FM Mattsson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kakel Max and FM Mattsson.
Diversification Opportunities for Kakel Max and FM Mattsson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kakel and FMM-B is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kakel Max AB and FM Mattsson Mora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FM Mattsson Mora and Kakel Max is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kakel Max AB are associated (or correlated) with FM Mattsson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FM Mattsson Mora has no effect on the direction of Kakel Max i.e., Kakel Max and FM Mattsson go up and down completely randomly.
Pair Corralation between Kakel Max and FM Mattsson
If you would invest 5,157 in FM Mattsson Mora on September 1, 2024 and sell it today you would earn a total of 123.00 from holding FM Mattsson Mora or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kakel Max AB vs. FM Mattsson Mora
Performance |
| Timeline |
| Kakel Max AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FM Mattsson Mora |
Kakel Max and FM Mattsson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kakel Max and FM Mattsson
The main advantage of trading using opposite Kakel Max and FM Mattsson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kakel Max position performs unexpectedly, FM Mattsson can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FM Mattsson will offset losses from the drop in FM Mattsson's long position.| Kakel Max vs. aXichem AB | Kakel Max vs. Polygiene AB | Kakel Max vs. Nordic Iron Ore | Kakel Max vs. Arctic Gold Publ |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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